mim - is it on ????

  1. 98 Posts.
    MIM still mum amid buzz over meeting
    March 26 2003

    Rumours intensify that the miner may accept Swiss-based Xstrata's cash offer.

    The Xstrata-MIM Holdings takeover has generated much talk but little action, so it's hard to know what to make of suggestions an announcement is nigh.

    MIM's board is believed to have held meetings in Brisbane yesterday with its advisers at Gresham Partners and Merrill Lynch, sparking rumours it will recommend shareholders accept an unconditional cash bid of $1.76 a share from the Swiss-based mining house.

    Nobody wanted to discuss the matter yesterday but it's easy to see why MIM's board might be keen on such an offer. Previously, Xstrata is thought to have proposed a share and cash offer of about $1.80 a share, but had trouble convincing MIM about the value of the paper. Xstrata has suffered a series of down-grades due to a weak earnings outlook and local fund managers are reluctant to accept its scrip.

    MIM shares closed 2c lower at $1.44 yesterday, meaning any cash bid around the $1.76 mark represents a handy premium.

    Given BHP Billiton, Rio Tinto and Anglo are said to have visited the Gresham and Merrill-managed data room to inspect parts of the MIM empire, whispers that Xstrata is keen to get its skates on are understandable.



    MIM managing director Vince Gauci argues net value estimates of $1.70 to $1.80 a share do not account for growth options.

    I see XTA.L are down another 5% overnight ?? Interesting.
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